Climate change is characterized by unpredictable weather patterns and temperature shifts. Natural causes, such as solar radiation, and human activities, including the burning of fossil fuels, contribute to its acceleration.

While some analysts argue that human-induced greenhouse gas emissions play a minimal role in global warming, research proves otherwise. Carbon dioxide from fossil fuels is the primary greenhouse gas derived from human activity. Mitigating emissions to reduce global warming is crucial. Strategies to lower CO2 emissions target preserving fossil fuels, yet it is critical to embrace renewable and clean energy through the development of green technology.

The school of thought known as Classical Economics evolved during the 18th and 19th centuries. It was influenced by the Physiocrats and has contributors like Adam Smith, David Ricardo, Thomas Malthus, John Mill, and Karl Marx. Classical economists suggested that the economy needed little or no intervention from the government. They argued that any disequilibrium would correct itself.

Although global warming was not an immediate concern in the 18th and 19th centuries, the repercussions of decisions made by countries, businesses, and consumers affect the economy as explained in classical economics. This paper analyses classical economics theories that explain or criticize decisions made concerning global warming and their effects on the economy.

Carbon dioxide emissions, primarily resulting from fossil fuel burning and cement manufacturing, contribute to global warming. Research shows that most of these emissions stem from developed countries such as China and the United States. As developing economies undergo transformation, they emit more CO2 due to providing energy services to many households and commercial industries. Climate change could impact countries' GDPs significantly, with a lot more damage inflicted on poorer countries, making it necessary to minimize its effects to ensure economic stability.

Addressing global warming necessitates government intervention. However, classical economics views the economy as self-regulating. Willaimson et al. rightly emphasize the need for swift action to reduce emissions; otherwise, the earth will experience more intense and severe impacts threatening both people and natural systems. Carbon pricing, tax, and auctions are some of the incentives created to encourage carbon emission reduction. Critics of classical economics argue that the school of thought is detrimental to the environment and economies. It undermines policies, such as carbon pricing and carbon taxes, disincentivizing companies and factories from taking responsibility for their carbon emissions.

Implementing guidelines to mitigate greenhouse gas emissions puts pressure on governments, such as the implementation of carbon taxes, causing companies to incur extra costs due to their emissions. This can be discouraging, leading to businesses shrinking, affecting the economy's growth.

The theory of classical economics was formulated by renowned economists such as Adam Smith, David Ricardo, Jacques Turgot, and Jean Baptiste Say who laid the foundations for economic principles. Smith's acclaimed book, "The Wealth of Nations" published in 1776, emphasized that the wealth of a nation did not depend on gold reserves but rather on the effective use of available capital and division of labor by its people.

The core concepts of classical economics centered on the principles of free market, invisible hand, profitability incentives, inclusion of private sector, self-interest and market forces working in tandem with supply and demand to achieve equilibrium. Classical economic growth models primarily hinged on ideas such as capitalism, laissez-faire policies, and minimal government intervention.

David Ricardo bolstered the theory of free competition and trade with his work "On the Principle of Political Economy and Taxation." His explanation of the concept of comparative advantage was built around efficient production and specialization. Perfect competition can create a comparative advantage, and imports from other countries can often be cheaper than local markets, as elucidated by Smith's concept of absolute advantage.

To tackle the detrimental impacts of global warming on various economies, several international treaties and agreements have been introduced. The Montreal Protocol of 1987, Kyoto Protocol of 2005, and Paris Agreement of 2015 are among the most significant ones aimed at controlling global warming. The Montreal Protocol was ratified by United Nations members to combat the depletion of the ozone layer. The Kyoto Protocol urged member states to reduce their greenhouse emissions by 5%, while the Paris Agreement required countries to maintain warming at or below 2 degrees Celsius and pursue efforts to limit it to 1.5 degrees Celsius. However, countries like China, the European Union, and the United States are the largest contributors to global greenhouse gas emissions.

Despite these global efforts, global warming remains a significant burden on many economies, with India being a prime example. Studies estimate that a 3-degree Celsius rise in global warming could contract India's GDP by anywhere between 10% to 90% by 2100. Countries such as Sudan, Nigeria, India, Indonesia, and Brazil have all experienced negative per capita growth over the last few decades due to global warming, while nations like Norway, Canada, Sweden, Great Britain, and France have recorded positive growth. In warm climates, an increase in temperatures from greenhouse gases can enhance productivity, while the opposite is true for hot countries such as Nigeria. Studies also suggest that global warming could slow down the economic growth of poorer countries as it leads to unpredictable weather changes and other calamities.

The far-reaching impact of global warming is evident in the economy. Higher temperatures can result in customers avoiding outdoor activities, resulting in loss of earnings and restricted economic activities. Businesses are forced to invest in cooling systems, thus incurring higher production costs. Supply and demand can be negatively impacted, leading to decreased economic growth. Agricultural crops, which constitute the mainstay of various economies, are constantly destroyed due to the ravages of rising temperatures, resulting in floods, droughts, storms, and wildfires. Moreover, global warming could change landscapes, as witnessed in Nunavut, Canada, where Inuit hunters face survival challenges due to the thinning of sea ice.

Classical economics provides a relevant framework for understanding the impact of global warming on economies, as the fundamental principles of economic theory have remained constant. The theories and concepts established by economists such as Adam Smith, David Ricardo and Jean Baptiste Say have helped shape the economic systems of nations around the world, and continue to inform contemporary economic thinking.

The notion of the invisible hand, introduced by Smith, remains pertinent to modern market economies, where prices serve as the catalyst for supply and demand. The principles of supply and demand, which are at the core of classical economics, still dictate the products that vendors are willing to sell, and the willingness of consumers to purchase.

Classical economics also focused on wage rates, production costs and the volume of goods produced. While the issue of comparative advantage still exists today, the principle of absolute advantage is now applied to monopolies which are necessary for economic growth. Though global warming was not a concern during the era of classical economics, income derived from monopolies is essential for combating its effects on our economies.

Laissez faire liberalism was another component of classical economics, emphasizing free markets, limited state intervention, private ownership, and freedom of choice. While this concept remains part of modern economic systems, advocates of laissez-faire are now advocating for government subsidies, such as those available to financially-struggling institutions like Silicon Valley Bank.

Classical economics will continue to remain relevant in the context of global warming and its impact on economies, as the contemporary economic systems built on these principles have allowed for greater stability and sustainability within our technological era.

In conclusion, the primary contributor to global warming and the subsequent climate change is CO2 emissions from industrialized economies. Given the objections to responsibility on the part of businesses that classical economics promotes, government intervention is necessary in order to address emissions and mitigate these effects.

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